Exercise 19-10

Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarters activity are presented below.

		Tablet Division		MP3 Player Division		Total
Sales		$877,500		$472,500		$1,350,000
Variable costs		631,800		264,600		896,400
Contribution margin		$245,700		$207,900		453,600
Fixed costs						138,096
Net income						$315,504

Determine sales mix percentage and contribution margin ratio for each division.

Calculate the companys weighted-average contribution margin ratio

Calculate the companys break-even point in dollars

Determine the sales level in dollars for each division at the break-even point.